Can you please provide for my community and others the process on allocation of sales of council property and the allocation of funds of the sale by the council and why this does not go back in to the community.
There have also been questions raised about who PCC have acquired property that was once in the community ownership such as the old library, council offices and the main carpark in Hay.
There is also request for clarity on how PCC spend the money after as it does not come back to the community. Hay community feel like they have had many broken promises in this area and clarity on the rational and legal process will hopefully provide the community with why it is set this way?
I feel clear communications will help the community understand even if we do not agree with the process.
Response by the Portfolio Holder:
All property acquisitions and sales are governed by the PCC Corporate Asset Policy. A copy of the policy is attached.
Community and other property assets have been acquired by PCC via various local government reorganisations such as those reorganisations in 1974 and again in 1996 under the Local Government Wales Act’. It also took full responsibility and liabilities for the provision statutory services from those authorities’.
The capital receipts generated through the sales of property have to be used in a certain way under Local Government legislation, their use is defined in the Capital Receipts policy.
The capital receipts policy is included in as Appendix B of the Capital Strategy and Treasury Management Strategy which was presented to Council as part of the budget papers on the 26th February 2021.
The current policy for the use of Capital Receipts is contained in the Corporate Asset Policy.
• Capital Receipts will normally be credited to the Central Fund and will be used to progress the Council’s principal objectives defined in the Corporate Improvement Plan. However, up to 4% of the capital receipt may be reclaimed by Property as permitted and approved costs of sale.
• Capital receipts from the sale of Farm or Agricultural land under the County Farm Estate and property vested in the HRA will be subject to the following apportionment:
This policy proposes the use of Capital Receipts to continue to be based on the following
Type Service Area Corporate
Agricultural 0% 100%
HRA Dwellings and Land 100% 0%
Home finder Receipts 100% 0%
Vehicles 100% 0%
Income that meets the definition of capital receipts is reserved for new capital investment or for the reduction of an authority’s indebtedness.
This definition has however been extended by a Capitalisation directive (April 2018) on the Flexible Use of Capital Receipt by the Welsh Government.
Under the capitalisation directive currently in force, all capital receipts received since 1st April 2018 have been used to fund expenditure incurred that is designed to generate ongoing revenue savings in the delivery of services and/or transform service delivery in a way that reduces cost or demand for services in future years for any of the public sector delivery partners.
Once this directive ends any remaining and future capital receipts will be allocated for new capital investment or for the reduction of an authority’s indebtedness and used to progress the Council’s principal objectives defined in the Corporate Improvement Plan.